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New Car Market Declines in May, But Remains Set For A Strong YearBack

New passenger car registrations declined in May but year to date the overall new car market remains on high levels

New passenger car registrations declined by -8.5% in May, with a total of 186,265 units. Year to date, the market is -0.6% lower than last year. Between January and May, more than 1.1 million cars were registered. Alternative fuel vehicles (AFVs) saw an impressive growth of 46.7%, a total of 8,258 AFVs were registered in May 47,936 year to date.

The general election may have a short-term impact on consumer confidence, but franchised car retailers continue to see solid footfall through the dealerships and in the medium and long term consumer spending is expected to remain stable.

The growing importance of low emission vehicles is reflected in the strong performance of AFVs in May. However, there must be continued and coordinated support from the Government and the industry to encourage the uptake of these vehicles which have now reached a record market share.

In a period of change it will be interesting to see what the upcoming months have in store. Positively, the overall 2017 new car market seems set to stay at historically high levels.

Posted by Sue Robinson on 09/06/2017